The five-year bull market has been a great ride, but not for everyone.
For instance, Morningstar
analyst Greg Carlson writes about
three stock-picking funds that have seen a few missteps and have taken a beating in flows as a result.
The funds are:
1. The Thornburg International Value
fund that has trailed 90 percent of its peers year-to-date and has suffered $6.9 billion in outflows so far this year.
2. The GMO Quality
fund, which trailed more than 80% of its category peers in 2009, 2010, 2012, and 2013, and it sports a similar category ranking for the trailing five years, according to Carlson. It has seen $2.6 billion it outflows this year.
3. The Perkins Mid Cap Value
fund, which trailed more than two thirds of its mid-value peers in 2009, 2010, 2012, and 2013. It experienced $2.4 billion in outflows in 2014.
Carlson gives a number of reasons for the performance woes of these funds, including strategic missteps and tailwinds.
However, these funds still garnered fairly respectable Analyst Ratings: the Thornburg
funds with Bronzes (they were downgraded) and the Perkins
with a Silver (also downgraded).
They aren’t alone. Money reports
that a number of stock-pickers made mistakes this year choosing popular stocks that underperformed the S&P 500
, with the stocks gaining 6% to the index’s 8%. Meanwhile, unpopular stocks gained 10%.
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